5G Stocks: What the $12.3 Trillion 5G Battle Means for Investors

The battle is fully on.

5G stocks

5G wireless technology is spreading like wildfire around the globe, the top telecom firms are duking it out to be first to market, and the stakes are enormous.

This technology is such a huge leap that it’s going to propel society forward. It is going to be the centerpiece of an entire new generation of groundbreaking technologies. It’s the key driver of what insiders are already calling the “Next Industrial Revolution.”

5G is expected to unlock $12.3 trillion in revenue across multiple industries, so it’s only natural companies are falling all over themselves to grab market share as soon as possible.

Last week, the CEOs of Qualcomm (NASDAQ:QCOM), Verizon (NYSE:VZ) and IBM (NYSE:IBM) openly fretted on CNBC about the speed with which Chinese companies like Huawei are building 5G infrastructure. Huawei is hugely controversial right now, but it has already signed over 50 commercial 5G contracts, eclipsing its closest competitors Nokia (NYSE:NOK) and Ericsson (NASDAQ:ERIC).

The stakes are so high that even nations are joining the race. The Chinese government is fully backing 5G deployment, handing out licenses to the likes of Huawei and other large state-owned mobile carriers for the commercial rollout.

It’s a preoccupation of President Trump as well as and a focal point in trade tensions. He blacklisted Huawei in May, saying it’s a national security risk, and smothered the company’s ability to do business with American firms. Trump and the FCC are instead cheering on the private sector at home to win the race for 5G dominance.

Federal Communications Commission Chairman Ajit Pai recently told the American Spectrum Management Conference in Washington that he’s optimistic the FCC “will have results to show” regarding the final proposal for repurposing C-band satellite spectrum for 5G wireless broadband.

Opening up the C-band to 5G would be an unprecedented move because up until now those airwaves were only open to TV broadcasters and cable companies. Because mobile operators will need more capacity for 5G, the government may allow satellite companies to give mobile companies the ability to use some of their space.

Doing so would be a big catalyst in general, but especially for a couple of companies I recommend in my Investment Opportunities service that own the rights to 90% of C-band. That’s not a monopoly, but it’s darned close.

On Wednesday, Trump met with Finland President Sauli Niinisto, to talk about ways Finnish firms like Nokia can beat 5G tech from Huawei and other Chinese telecoms.

AT&T (NYSE:T) and Verizon have begun to deploy their 5G networks in the U.S., while T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) plan to do so later this year.

Verizon CEO Hans Vestberg just remarked at the Goldman Sachs Communacopia conference that 5G networks are key to the company’s strategy right now. The company just rolled out 5G service in New York City, Panama City, Florida and Boise, Idaho, bringing its total of cities covered to 13.

Vestberg predicted that the innovation that sprang from the 4G era — the greater coverage and speed that provided rocket fuel for firms like Facebook (NASDAQ:FB) and Netflix (NASDAQ:NFLX) to soar to stock market fame and fortune — will be the same with 5G.

I think he’s way too conservative with that prediction. It’s going to be much bigger. Just take a look at what 5G is set to deliver.

This breakthrough tech will allow for up to 1,000 times more data to flow through it at any given time — and at much faster speeds — than 4G. That’s a sea change in capability, and it touches almost every industry on the planet.

I call it a keystone technology because it will enable so many other cutting-edge developments.

Verizon alone has three lines of business with 5G: 5G mobile for businesses and consumers; 5G home broadband; and mobile edge computing. Edge computing basically involves processing data near the edge of a network, or where the data are being generated. It’s crucial to the deployment of tiny devices known as the Internet of Things (IoT) that can send and receive data in near real-time. Grand View Research estimates edge computing will be worth $28.8 billion by 2025.

Verizon plans on having 5G coverage in 30 markets in the United States by the end of the year. AT&T has said it hopes to have nationwide 5G coverage by the middle of next year.

By then, we’re likely to see a massive expansion in the Internet of Things market, estimated to eventually generate $19 trillion in revenue. That’s not a typo.

See, in the next few years, companies are going to spend some $5 trillion on the IoT — the breakthrough technology that enables physical devices to “talk” to each other and share data without requiring humans to get involved.

That in turn allows for smart cars, appliances, even cities to operate at a level that hasn’t been possible … until now.

Cities will soon monitor the structural health of every building, bridge, water main, and road, preventing major breakdowns in infrastructure …

Knowing in real time how safe an overpass is or catching a leaky gas line before it explodes not only saves a ton of money but lives too.

Cars will talk directly to the roads and each other.

Power grids will direct electricity only to where it’s needed, allowing for massive savings on the city and consumer levels.

All of these things were only dreamed of at the dawn of the 4G era. But with 5G, they’ll be a reality.

The real beauty of it all is that investors still have a chance to get in early, while this enormous technological shift is just getting underway. That’s how fortunes are made.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/moneywire/2019/10/5g-stocks-what-the-12-3-trillion-5g-battle-means-for-investors/.

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